3D Hubs, a US-based 3D printing contract marketplace backed by media company Hearst, has agreed to an up to $330m cash and shares acquisition by digital manufacturing services provider Proto Labs.
The deal consists of $130m in cash and $150m in Proto Labs common stock, with a further $50m contingent on performance-based milestones, split 50-50 between cash and common shares. It is expected to close by the end of January 2021.
Founded in 2013, 3D Hubs runs an online 3D printing marketplace where product suppliers can order custom-made parts fabricated to their specific manufacturing requirements. The orders are fulfilled through 3D Hubs’ vetted manufacturing partners, located in 20 different countries.
Proto Labs expects the acquisition to accelerate its revenue growth but has warned to expect marginal detriment to this year’s earnings. The company will add 3D Hubs’ partnerships to its existing collaborations to enable a broader range of manufacturing capabilities.
Hearst’s corporate venturing unit Hearst Ventures backed an $18m series C round led by Endeit Capital in April 2019 that included EQT Ventures, the venture capital arm of private equity group EQT Partners, as well as VC firm Balderton Capital and individual investor Arthur Kosten.
The deal followed a $7m series B round led by EQT in 2016 that was backed by Balderton, which had already supplied $4.5m of series A funding two years earlier. Balderton also provided an undisclosed seed sum in 2013, according to Forbes.
DOEN Participaties, Future Shape and Rockstart had also invested previously, according to Tech.eu.
Rob Bodor, vice-president and general manager of Protolabs, said: “The addition of 3D Hubs provides Protolabs a platform to evolve our service model to provide unprecedented manufacturing flexibility to our customers.
“Our combined organisations will provide the market an industry-leading digital manufacturing solution to serve their needs from idea to prototype to full end-use part production.”